Prudential (PRU) Q4 Results: Japan Sales Halt, Asset Management Outflows Pressure Outlook

Prudential Financial (NYSE:PRU) reported Q4 CY2025 revenue of $14.52 billion, up 11.6% year-on-year, and non-GAAP earnings of $3.30 per share, slightly below the midpoint of analyst estimates. The quarter was negatively impacted by a 90-day suspension of new sales in Prudential of Japan (POJ) following internal findings of employee misconduct, with management in consultation with Japanese regulators. POJ is expected to reduce 2026 pretax adjusted operating income by $300 million to $350 million and potentially bring EPS growth to the lower end of its 5%–8% guidance. CFO Yanela Frias noted the possibility of missing the low end of the 2027 EPS range if the issue’s duration or magnitude differs from current expectations. Core U.S. operations generated higher spread income, but active asset management outflows, particularly at Jennison, and the industry shift toward passive solutions weighed on the outlook. Management remains focused on cost discipline, improving the business mix, and expanding into higher-growth international and retirement markets to offset headwinds.